Small businesses in the U.S. are experiencing a plateau in their post-pandemic recovery efforts, as reported by a recent survey conducted by the 12 Federal Reserve Banks. This 2025 Report on Employer Firms, which draws from the 2024 Small Business Credit Survey (SBCS), highlights the challenges and reliefs small businesses are facing.
“For the first time since 2021, small businesses reporting a drop in revenue outnumbered those reporting an increase,” according to the survey findings, suggesting persistent challenges from the pandemic period. The report also notes that while employment growth has mostly held steady, it remains below pre-pandemic levels.
The survey gathered insights from 7,653 American companies with one to 499 employees. It was conducted from September 4 to November 4, 2024. These firms, which make up 99.7% of all employer establishments in the United States, were asked about their business performance, financing needs, and borrowing experiences.
The survey found that rising costs and debt levels remain challenging, but there is noticeable relief concerning supply chain and staffing issues. However, the results caution that the SBCS is not a random sample, urging that results should be considered with an understanding of potential biases associated with convenience sampling.
The Fourth Federal Reserve District, which comprises Ohio and parts of Pennsylvania, West Virginia, and Kentucky, contributes to these nationwide surveys, offering resources and information beneficial to local and broader U.S. communities.
For more detailed insights and data, individuals are encouraged to access the full report titled “2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey.”
For further inquiries, contact Chuck Soder at chuck.soder@clev.frb.org or 216.672.2798
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